Hello Group (MOMO) Q2 2025 earnings summary

Executive summary

• Q2 2025 total revenue was RMB 2.62 billion, down 2.6% year-over-year but up 4% sequentially, with overseas revenue up 72.7% to RMB 442.4 million.

• Net loss attributable to shareholders was RMB 140.2 million in Q2 2025, compared to net income of RMB 397.8 million in Q2 2024.

• Non-GAAP net loss was RMB 96 million in Q2 2025, mainly due to a one-off withholding tax; excluding this, non-GAAP net income was RMB 451.9 million, up 1% year-over-year.

• MAU on Tantan fell to 10.2 million in June 2025 from 12.9 million in June 2024; Momo app paying users dropped to 3.5 million from 7.2 million year-over-year.

• Management highlighted stabilization in domestic business and rapid overseas growth, with cost controls supporting profitability.

Financial highlights

• Value-added services revenue was RMB 2.58 billion, down 2.6% year-over-year, but up 4% sequentially.

• Cost and expenses in Q2 2025 were RMB 2,227.7 million, down 2.1% year-over-year, driven by reduced marketing and production costs.

• Income from operations was RMB 403.5 million in Q2 2025, down from RMB 425.0 million in Q2 2024.

• Non-GAAP gross margin was 38.8%, down 2 percentage points year-over-year.

• Net cash provided by operating activities in Q2 2025 was RMB 250.1 million, down from RMB 475.2 million in Q2 2024.

Outlook and guidance

• Q3 2025 revenue is expected between RMB 2.59 billion and RMB 2.69 billion, representing a year-over-year change of -3.2% to +0.6%.

• Domestic business is projected to decrease mid to low teens year-over-year, while overseas revenue is expected to grow in the mid-60% range.

• For 2025, group top-line could see a slight downtick or remain flat versus 2024, with domestic revenue declining low teens and overseas revenue growing around 70%.

• Gross margin for 2025 is expected at the lower end of 36-37%, with operating margin at the lower end of 13-14%.